Grain-oriented silicon electrical steel (“GOES”) is a flat-rolled alloy steel product containing by weight at least 0.6 percent of silicon, not more than 0.08 percent of carbon, not more than 1.0 percent of aluminum, and no other element in an amount that would give the steel the characteristics of another alloy steel, in coils or in straight lengths. The GOES that is subject to this investigation is currently classifiable under subheadings 7225.11.0000, 7226.11.1000, 7226.11.9030, and 7226.11.9060 of the Harmonized Tariff Schedule of the United States (HTSUS). Although the HTSUS subheadings are provided for convenience and customs purposes, the written description of the scope of this investigation is dispositive

Petition filed for Antidumping and Countervailing Duty Investigations into Grain-Oriented Electrical Steel from China, Czech Republic, Germany, Japan, Korea, Poland, and Russia
On September 18, 2013, AK Steel Corp., Allegheny Ludlum, and the United Steel Workers (“Petitioners”), filed a petition with the U.S. International Trade Commission and U.S. Department of Commerce seeking antidumping investigation of Grain Oriented Electrical Steel from China, Czech Republic, Germany, Japan, Korea, Poland, and Russia, and a countervailing duty investigations of Grain Oriented Electrical Steel from China.

Dumping occurs when a foreign company sells a product in the United States at less than its normal value. Petitioners allege that producers and exporters of Grain Oriented Electrical Steel from China, Czech Republic, Germany, Japan, Korea, Poland, and Russia are dumping Grain Oriented Electrical Steel with margins of 168.47% (China), 217.23% (Czech Republic), 188.59% (Germany), 171.25% (Japan), 100.64% (Korea), 94.85% (Poland), and 81.78% (Russia). These percentages are what the Petitioners believe should be used as additional import duties on imports of Grain Oriented Electrical Steel from the respective countries. Subsidies are financial assistance from foreign governments that benefit the production, manufacture, or exportation of goods. Petitioners also allege that Chinese producers and exporters of Grain Oriented Electrical Steel benefited from at least 16 subsidy programs.

Both types of investigations involve two separate parts: an evaluation by the U.S. International Trade Commission of whether U.S. producers are being injured by reason of the imports, and a calculation by the U.S. Department of Commerce of the margin of dumping or subsidies of individual exporters from China, Czech Republic, Germany, Japan, Korea, Poland, and Russia.

The U.S. International Trade Commission has initiated its investigation into injury. It will have 45 days to make its preliminary injury determination -- that is, until November 4, 2013. Importers, producers, and exporters can participate in the U.S. International Trade Commission’s evaluation of whether Grain Oriented Electrical Steel imports are injuring the U.S. domestic Grain Oriented Electrical Steel industry by filling out and sending in a questionnaire response about production, importation, and sales of Grain Oriented Electrical Steel.

The U.S. Department of Commerce will evaluate the petitions to determine whether they contain allegations and evidence that is reasonably available to the Petitioners indicating that Grain Oriented Electrical Steel sold to the United States from China, Czech Republic, Germany, Japan, Korea, Poland, and Russia is dumped, and whether Oriented Electrical Steel sold to the United States from China is subsidized by the governments of those countries. If the Department of Commerce determines that the petition is sufficient, it will initiate its investigations into subsidies in 20 days -- that is, by October 8, 2013.

It is recommended that
U.S. international trade counsel assist in legal defense in the injury investigation and in the antidumping and countervialing duty investigations.

Grain-Oriented Electrical Steel
Investigation Timeline:

EVENT

AD
INVESTIGATION

Petitions
Filed

September 18, 2013

DOC Initiation
Date

TBD - Gov't Shutdown

ITC
Preliminary Determination*

TBD - Gov't Shutdown

DOC
Preliminary Determinations**

TBD - Gov't Shutdown

DOC Final
Determinations**

TBD - Gov't Shutdown

ITC Final
Determination***

TBD - Gov't Shutdown

Issuance of
Orders****

TBD - Gov't Shutdown

* If the ITC makes a negative preliminary
determination of injury, the investigations are terminated.
**These deadlines may be extended under the governing statute.
***This will take place only in the event of final affirmative determinations
from Commerce.
****This will take place only in the event of final affirmative determinations
from Commerce and the ITC.